LaunchZone has promised to announce compensation plans for all affected investors soon.
LaunchZone, a BNB Chain-based decentralized finance (DeFi) protocol, has lost over $300,000 worth of assets from its liquidity pool.
While details are scanty, it is believed that, during the exploit, LaunchZone lost over 80% of its funds held in the liquidity pool.
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Shortly after the exploit, the protocol issued a statement via its Telegram group, which has over 44,000 members. In the statement, LaunchZone noted:
$LZ is being hacked from DND exploiter. The team is handling the situation, please don’t buy the token at this stage. Please keep calm. We will update timely (sic).
A few hours later, LaunchZone issued a separate announcement on Twitter. In the statement, LaunchZone shared its plans regarding the compensation and what has been done so far.
Firstly, LaunchZone has reportedly moved the liquidity of LZ tokens to Arbitrum. Secondly, the company promised to refund investors that bought LZ after the attack and had not sold them. On top of that, LaunchZone said it will repay investors that “have LZ LP added.” Lastly, the firm said it will allow investors to “claim the current LZ locked in LZpad.”
On February 28th, LaunchZone shared a tweet revealing that after its “due diligence,” the firm found out that its “SwapX” was attacked. The company estimates that malicious actors stole approximately $320,000 worth of assets.
The company highlighted that it takes responsibility for the exploit and will issue compensation plans shortly.
LaunchZone will take our own responsibility for the loss and will have the compensation plans to all the investors, which will be released in details soon. Any loss due to your wallet interactions after 24 hours from this announcement will not be compensated.
Soon after the news about the exploit on the BNB-based DeFi protocol broke, the price of LaunchZone, native token LZ, plunged by 82%.
It appears that malicious actors are targeting DeFi projects. On February 21st, the news broke that DeFi project Hope Finance lost around $2 million in a recent scam.